Climate Change, Floods, Droughts, Food Prices and the Inflation Mega-trend
By: Nadeem Walayat
Aug 04, 2010
Food prices are soaring with wheat up more than 50% in a month whilst the mainstream press looks for answers in triggering events such as the Russian drought and wild fires, Pakistan flooding whilst it’s President Zadari holidays in Britain with an eye on eventually treating himself to a British passport. However rising food prices as a consequence of climate change, population growth and the rise of asian per capita consumption are just part of the manifestation of the unfolding multi-decade long Inflation megatrend.
Rising food prices will feed into official inflation indices such as the CPI and RPI which are already persistently running well above the Bank of England’s 2% CPI target at 3.4%, which compares against the Bank of England’s February forecast of UK CPI inflation falling below 1% by now.